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seam is thin at this place, averaging from 3 to 6 feet; the roof changeable in its nature, requiring constant watching and attention. Considering the large number of men employed, the great extent, and difficulties necessary to be overcome in this mine, its complete immunity from accident, speaks in the highest terms of the careful management of Mr. T. P. Moody, and his underviewer, Mr. Swinbourne. At the date of my last visit, 11th and 12th instants, the works and machinery were in good order. Ventilation was also good, except in a few faces to which the air was being brought. With the exception of the accident mentioned in the Kamo mine, there has been none in any of the others. There are several places at which new mines will shortly be started In the Waikato District. One Company has sunk a shaft 1200 to 1300 feet N.E. from Foot's old mine, at the head of the Maramarau river, and have sunk through 63 feet of coal. It is only intended, however, to work 47 feet, as there is a band at that depth, and the coal below this band is not considered so good as that above. The machinery erected at present is only temporary. A canal is being cut through the swamp, 53 chains in length from the Maramarau liver, which will enable the barges being brought right up to the mine. The late wet weather has caused a rise of the swamp water level, this work is, therefore, for the present, suspended. All the operations are being conducted under the plans and superintendence of Messrs. Stewart and Hunter, civil engineers, Auckland. On portion of the Education Reserve, at Huntly, lately leased by the Commissioner of Crown Lands, a seam 15 to 16 feet thick was struck when I was there on the 4th instant. At Ohinemuri the coal has been followed in on the level for a considerable distance, and, according to my latest information, it is improving. Another company purpose laying about 15 miles of a tramway from the Miranda side, to join the Auckland railway, but I have no information as to the nature or thickness of the seam or seams intended to be worked. I have, &c, James M. McLaren, Inspector of Mines. To the Under-Secretary for Mines, Wellington.

No. 2. INTEEIM EEPOET UPON INSPECTION OF COAL MINES, MIDDLE ISLAND DISTBIOTS. Mr. Inspector Binns, F.G.S., to the Under-Secretary for Mines. Sir, — Offices of Inspector of Mines, Dnnedin, 2nd June, 1885. I have the honour to make the following Report, in anticipation of my usual Report on the control and inspection of mines, which will be sent up in a few days. Number of Goal Mines during 1884.—During the year 1884, 16 mines were struck off the list, and 11 were added, —leaving a decrease of 5, and a total of 89 remaining, This diminution in number is a healthy sign, if accompanied by an increase in production as the average annual output must obviously be larger. These small one-man mines are seldom of much value to anybody. The owner is generally too short of capital to work very safely ; the return to him is generally very small, and only in some rare instances are they of much value. Among the mines struck off, only the Brockley, in Canterbury, was of any importance, and that will, no doubt, re-commence operations at no very distant date. The new undertakings do not merit much attention. Number of men employed. —During 1884 there was very little change in the number of men, which was 1017, above and below. The output, per man, however, is largely augmented, being 3705 tons per man, as against 311 during the previous year. Output of Goal.— The output for 1884 was 376,828 tons; an increase of 48,826 tons over 1883. The principle advance in quantity being—Banbury Mine, 39,190 ; Brunner Mine, 10,235; Walton Park Colliery, 8416 ; Fernhill Colliery, 8236; .Koranui Mine, 2689 ; and Green Island, 2831. Those mines which shew a falling off, are—Shag Point, 20,238; Homebush, 6741; Canterbury, 3708; and Kaitangata, 2958. Death-rate in South Island. —During 1884, there were 3 fatal accidents in this Island; the death-rate, therefore, is—125, 609 tons raised, and 339 men employed per life lost; or 2-95 lives lost for every 1000 men, which is by no means a good result. General Remarks. —The principal subjects of general interest since my last Report are as follow :—The vigorous commencement of harbour works at the coal ports on the West Coast, by which the mines in that district will be able, not only to increase their output very considerably, but also to undertake a steady trade, which is of the greatest importance. I have frequently pointed out how an intermittent trade damages coal mines, partly by causing too many hands to be employed, who, on account of inconstant employment, require higher wages ; but, principally, by creating rushes for coal which never fail to leave their damaging marks on the condition of the workings. Had it not been for the recent unfortunate disagreement at the Westport Coal Company's Banbury Mine we might already have looked for a very large increase on the West Coast. As it is, however, the Koranui Coal Company have got into regular work (producing, Capt. Williams tells me, 150 tons per day) and the Brunner Mine, having been proved beyond a large fault, which has for years kept the works in check, will assist to make up the deficit. On this Coast, the Shag Point Company have recommenced work with fair prospects, and the Kaitangata Company have opened up a new coal area which will, no doubt, yield a large output. The Canterbury mines have done badly, but a short extension of railway communication in that province would open up seams of coal of such quality as to command a market. In Southland, a good deal of attention has been called to a deposit of very excellent coal on the slopes of Mount Hamilton. The existence of this has been known for many years, but the latest discovery was much lower down, and the seam much thicker. It is, however, so heavily faulted that no commercial value could be placed upon what is at present known. I have, i&c, George J. Binns, Inspector of Mines. The Under-Secretary for Mines, Wellington.

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